RIL convinced of its strong case against SEBI order

Reliance Industries Limited (RIL) shares have taken a beating on SEBI's penal action, but the company has said that it has a strong case against the regulatory order. It added that there was no market manipulation done on account of trades in cash and futures segments.

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"The company reiterates that an appeal will be preferred against the order in Securities Appellate Tribunal," $4 said in a regulatory filing.

Taking legal advice from its team, the company is confident that the appellate forums will uphold its position.

RIL shares declined by 3% on bourses after SEBI $4 the company and 12 others from equity derivatives trading for one year. The case has been in court for 10 years. $4 also said that $4 has poured out nearly Rs 1,000 crore for alleged fraudulent trading.

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Elaborating on the matter the company said: "There is no market manipulation by the company on account of the trades both in futures and cash segments. There are no profits or losses in a hedging transaction, leave alone undue profits."

"Open positions in excess of limits prescribed in circulars is neither fraudulent nor manipulative as per the bye laws and regulations of stock exchange and also as Securities Contracts (Regulation ) Act," it added.

It added that the allegations cannot attract the consequences sought for in the show-cause notice, and that selling at a price marginally below the last traded price in a genuine delivery transaction in the cash segment does not account for a fraudulent and manipulative trade practice.

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